India’s investment landscape has been long dominated by equities and traditional instruments such as fixed deposits (FDs). However, bonds—often overlooked—are now gaining traction as an alternative asset class that offers a balance between risk and return. Irfan Mohammed, Executive Director of Aspero, believes the Indian bond market is at an inflection point, with growing retail participation and increasing awareness about fixed-income investments.
Aspero is on a mission to democratise debt investing, making it easier for individuals, Hindu Undivided Families (HUFs), and institutional investors to access high-yield, investment-grade bonds. In this exclusive interview with ET Markets, Mohammed discusses the challenges and opportunities in India’s bond market and how investor behaviour is shifting.
With the latest reforms from the Securities and Exchange Board of India, or SEBI, increasing foreign inflows, and a more stable domestic investor base, India’s bond market is set to become stronger and more liquid. But is the retail investor truly ready for this shift? And what is Aspero doing to ensure more Indians embrace fixed-income investing?
Read on as Mohammed breaks it down.
ET Markets: You talk about debt being a fundamental pillar of economic growth. Why do you think the debt market, particularly bonds, has been historically underutilised in India compared to equity? Also, what gaps in the bond investment market are you addressing?
Irfan: In India, the bond market has been underutilised due to a lack of awareness, limited access to products, and a preference for equities driven by higher visibility and quicker returns. We aim to bridge this gap by making fixed-income securities more accessible, transparent, and appealing to a broader audience. By offering a range of bonds with varying risk-return profiles, we empower investors to balance growth with security, tapping into the true potential of the debt market for long-term economic growth.
ET Markets: What will it take for the bonds market to establish the same pull as the mutual funds and equities market? What role do you think the financial advisory and wealth management community will play in this pursuit?
Irfan: For bonds to achieve the same widespread popularity as mutual funds and equities, a collaborative industry effort is essential. The Online Bond Platform Provider (OBPP) Association could play a pivotal role by launching an investor awareness campaign similar to the Association of Mutual Funds in India, or AMFI’s ‘Mutual Funds Sahi Hai’ initiative, creating accessible content to help retail investors understand bonds’ benefits and mechanics. On the regulatory front, measures such as reducing bond face values from Rs 10,000 to Rs 1,000 and introducing innovative features such as bond Systematic Investment Plans (SIPs) could significantly lower entry barriers for small investors.
Financial advisors and wealth managers are crucial to this transformation. They first need to fully appreciate how bonds provide both stability and attractive returns within a portfolio. Once advisors recognise bonds as strategic tools rather than just conservative options, they’ll be better positioned to recommend them appropriately to clients across different risk profiles and life stages. Online Bond Platform Providers such as Aspero are already enhancing accessibility through technology, but widespread adoption ultimately depends on this combined push from industry bodies, regulators, and advisory professionals working in unison.
ET Markets: The fixed-income investment space is becoming increasingly competitive, with platforms such as Wint Wealth and IndiaBonds already established. In such a landscape, what sets Aspero apart, and how do you plan to differentiate yourself from the competition?
Irfan: Aspero stands out by democratising debt investments with 24/7 access, allowing after-market orders and enabling HUFs to invest alongside individual investors. Our detailed issuer pages provide transparency, helping investors make informed decisions. Over multiple iterations, we’ve streamlined the KYC process to be the most seamless in the industry. Our best-in-class KYC process allows a user to be fully investment-ready within just 30 minutes, without a single document upload required. As one of the largest players in the fixed-income space, we offer highly competitive yields and an extensive inventory of senior secured bonds, setting us apart from other OBPPs.
ET Markets: There’s a narrative that bonds provide “steady returns” but aren’t wealth-building instruments in the way equity is. How do you challenge this perception?
Irfan: Bonds are often seen as steady but not wealth-building, similar to how FDs are seen more as savings rather than investments, yet they can offer significant returns, especially when strategically selected. With investment-grade corporate bonds offering returns up to 12-14%, bonds can be powerful wealth-builders, balancing risk and reward. It is only once investors start exploring bonds for themselves that we’d be able to see this perception shift, and it’s already starting to happen with retail investors rushing into the bond market.
ET Markets: Many Indian investors are still deeply reliant on traditional instruments such as FDs. What behavioural shifts do you think need to take place for fixed-income investing to go mainstream? Additionally, do you see a generational shift in how younger investors (25-35) view fixed-income products, or does the appeal remain primarily among older, more risk-averse investors?
Irfan: For fixed-income investing to go mainstream, investors need to shift from a “safe but low-return” mindset to understanding the potential of diversified, risk-adjusted returns that fixed-income products offer. It’s about showcasing how these products can work alongside traditional instruments, such as FDs, to build wealth without excessive risk.
Talking about younger investors (25-35), we’re already witnessing a shift as they are increasingly open to exploring fixed-income products. In fact, we have avid investors exploring bonds for themselves at the age of 60+ as well, which means the demographic is vast. They value stability and steady returns, especially in uncertain markets, and are more likely to embrace diversified portfolios that balance growth and security. The appeal is broadening beyond just older, risk-averse investors.
ET Markets: Aspero aims to democratise the debt market. Do you believe the Indian retail investor is truly ready for fixed-income investments, especially as many Indian investors are still deeply reliant on traditional instruments such as FDs? Is there still an education gap that needs bridging?
Irfan: While many Indian retail investors are still reliant on traditional instruments such as FDs, we believe the market is evolving. Fixed-income investments offer stability and predictable returns, and younger, more informed investors are increasingly seeking alternatives. However, there is an education gap to bridge, especially around the benefits of diversification and understanding the full potential of debt products. A lot of users still require assistance to evaluate bonds, understand the risks, and understand where the securities would go after the investment is made. However, these are all problems that both the SEBI and OBPP are working to solve. Bond Central (a centralised database portal for corporate bonds) is a good example of this, and the OBPPs individually are also taking steps to bring more transparency and build more educational content to comfort investors.
ET Markets: Retail participation in the bond market has traditionally been low. How does Aspero simplify access for first-time investors?
Irfan: At Aspero, we simplify access for first-time investors by providing educational guidebooks, videos, and onboarding materials to help users understand bonds and the investment process. We’ve also introduced a 24/7 chat feature, allowing users to get instant answers to any questions. Additionally, we offer bonds with low minimum ticket sizes and short tenures, making it easy for first-time investors to start small and gain confidence before committing more.
ET Markets: High-net-worth individuals (HNWIs) and family offices have traditionally dominated the fixed-income space. What does Aspero offer them that existing wealth managers and brokers don’t?
Irfan: Unlike traditional brokers, who primarily sell what’s available in the market, Aspero offers HNWIs and family offices a highly customised and strategic approach to fixed-income investments.
Aspero is on a mission to democratise debt investing, making it easier for individuals, Hindu Undivided Families (HUFs), and institutional investors to access high-yield, investment-grade bonds. In this exclusive interview with ET Markets, Mohammed discusses the challenges and opportunities in India’s bond market and how investor behaviour is shifting.
With the latest reforms from the Securities and Exchange Board of India, or SEBI, increasing foreign inflows, and a more stable domestic investor base, India’s bond market is set to become stronger and more liquid. But is the retail investor truly ready for this shift? And what is Aspero doing to ensure more Indians embrace fixed-income investing?
Read on as Mohammed breaks it down.
ET Markets: You talk about debt being a fundamental pillar of economic growth. Why do you think the debt market, particularly bonds, has been historically underutilised in India compared to equity? Also, what gaps in the bond investment market are you addressing?
Irfan: In India, the bond market has been underutilised due to a lack of awareness, limited access to products, and a preference for equities driven by higher visibility and quicker returns. We aim to bridge this gap by making fixed-income securities more accessible, transparent, and appealing to a broader audience. By offering a range of bonds with varying risk-return profiles, we empower investors to balance growth with security, tapping into the true potential of the debt market for long-term economic growth.
ET Markets: What will it take for the bonds market to establish the same pull as the mutual funds and equities market? What role do you think the financial advisory and wealth management community will play in this pursuit?
Irfan: For bonds to achieve the same widespread popularity as mutual funds and equities, a collaborative industry effort is essential. The Online Bond Platform Provider (OBPP) Association could play a pivotal role by launching an investor awareness campaign similar to the Association of Mutual Funds in India, or AMFI’s ‘Mutual Funds Sahi Hai’ initiative, creating accessible content to help retail investors understand bonds’ benefits and mechanics. On the regulatory front, measures such as reducing bond face values from Rs 10,000 to Rs 1,000 and introducing innovative features such as bond Systematic Investment Plans (SIPs) could significantly lower entry barriers for small investors.
Financial advisors and wealth managers are crucial to this transformation. They first need to fully appreciate how bonds provide both stability and attractive returns within a portfolio. Once advisors recognise bonds as strategic tools rather than just conservative options, they’ll be better positioned to recommend them appropriately to clients across different risk profiles and life stages. Online Bond Platform Providers such as Aspero are already enhancing accessibility through technology, but widespread adoption ultimately depends on this combined push from industry bodies, regulators, and advisory professionals working in unison.
ET Markets: The fixed-income investment space is becoming increasingly competitive, with platforms such as Wint Wealth and IndiaBonds already established. In such a landscape, what sets Aspero apart, and how do you plan to differentiate yourself from the competition?
Irfan: Aspero stands out by democratising debt investments with 24/7 access, allowing after-market orders and enabling HUFs to invest alongside individual investors. Our detailed issuer pages provide transparency, helping investors make informed decisions. Over multiple iterations, we’ve streamlined the KYC process to be the most seamless in the industry. Our best-in-class KYC process allows a user to be fully investment-ready within just 30 minutes, without a single document upload required. As one of the largest players in the fixed-income space, we offer highly competitive yields and an extensive inventory of senior secured bonds, setting us apart from other OBPPs.
ET Markets: There’s a narrative that bonds provide “steady returns” but aren’t wealth-building instruments in the way equity is. How do you challenge this perception?
Irfan: Bonds are often seen as steady but not wealth-building, similar to how FDs are seen more as savings rather than investments, yet they can offer significant returns, especially when strategically selected. With investment-grade corporate bonds offering returns up to 12-14%, bonds can be powerful wealth-builders, balancing risk and reward. It is only once investors start exploring bonds for themselves that we’d be able to see this perception shift, and it’s already starting to happen with retail investors rushing into the bond market.
ET Markets: Many Indian investors are still deeply reliant on traditional instruments such as FDs. What behavioural shifts do you think need to take place for fixed-income investing to go mainstream? Additionally, do you see a generational shift in how younger investors (25-35) view fixed-income products, or does the appeal remain primarily among older, more risk-averse investors?
Irfan: For fixed-income investing to go mainstream, investors need to shift from a “safe but low-return” mindset to understanding the potential of diversified, risk-adjusted returns that fixed-income products offer. It’s about showcasing how these products can work alongside traditional instruments, such as FDs, to build wealth without excessive risk.
Talking about younger investors (25-35), we’re already witnessing a shift as they are increasingly open to exploring fixed-income products. In fact, we have avid investors exploring bonds for themselves at the age of 60+ as well, which means the demographic is vast. They value stability and steady returns, especially in uncertain markets, and are more likely to embrace diversified portfolios that balance growth and security. The appeal is broadening beyond just older, risk-averse investors.
ET Markets: Aspero aims to democratise the debt market. Do you believe the Indian retail investor is truly ready for fixed-income investments, especially as many Indian investors are still deeply reliant on traditional instruments such as FDs? Is there still an education gap that needs bridging?
Irfan: While many Indian retail investors are still reliant on traditional instruments such as FDs, we believe the market is evolving. Fixed-income investments offer stability and predictable returns, and younger, more informed investors are increasingly seeking alternatives. However, there is an education gap to bridge, especially around the benefits of diversification and understanding the full potential of debt products. A lot of users still require assistance to evaluate bonds, understand the risks, and understand where the securities would go after the investment is made. However, these are all problems that both the SEBI and OBPP are working to solve. Bond Central (a centralised database portal for corporate bonds) is a good example of this, and the OBPPs individually are also taking steps to bring more transparency and build more educational content to comfort investors.
ET Markets: Retail participation in the bond market has traditionally been low. How does Aspero simplify access for first-time investors?
Irfan: At Aspero, we simplify access for first-time investors by providing educational guidebooks, videos, and onboarding materials to help users understand bonds and the investment process. We’ve also introduced a 24/7 chat feature, allowing users to get instant answers to any questions. Additionally, we offer bonds with low minimum ticket sizes and short tenures, making it easy for first-time investors to start small and gain confidence before committing more.
ET Markets: High-net-worth individuals (HNWIs) and family offices have traditionally dominated the fixed-income space. What does Aspero offer them that existing wealth managers and brokers don’t?
Irfan: Unlike traditional brokers, who primarily sell what’s available in the market, Aspero offers HNWIs and family offices a highly customised and strategic approach to fixed-income investments.
- Tailored investment opportunities – We don’t just offer what’s in the market; we curate and structure issuances based on the specific needs of HNWIs and family offices, provided the ticket sizes are significant.
- Unmatched depth and breadth – Our origination capabilities span the entire rating, tenure, and yield spectrum, giving investors access to a diverse range of opportunities that align with their risk-return preferences.
- Comprehensive family office solutions – Family offices often operate with multiple decision-makers. Aspero’s platform offers Role-Based Access Control (RBAC) and team management features, ensuring different members have appropriate access levels, streamlining decision-making, and enhancing operational efficiency.
ET Markets: What new features or services can investors expect from Aspero in the coming months? What’s your broader vision for Aspero within the Yubi Group ecosystem?
Irfan: At Aspero, we are continuously innovating to make fixed-income investing more accessible, transparent, and seamless for investors. Our focus is on removing barriers to entry, expanding investor participation, and enhancing liquidity in the bond market. By leveraging cutting-edge technology and deep market expertise, we are building an ecosystem where both institutional and retail investors can access high-quality fixed-income opportunities with ease.
Upcoming features and enhancements:
- Demat account opening for selling bonds– Liquidity has always been a key challenge in the fixed-income space. To address this, we are introducing a seamless demat account opening feature that will enable investors to sell their bond holdings effortlessly. By simplifying the liquidation process, we aim to provide investors with greater flexibility, ensuring they can exit positions efficiently when needed.
- Expanded investor access – Traditionally, certain investor categories, such as Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs), have faced limitations in participating in fixed-income markets. Aspero is bridging this gap by enabling these groups to invest alongside individual investors, fostering broader market participation and ensuring a more inclusive investment ecosystem.
ET Markets: What does the future of India’s bond market look like? Are there any regulatory shifts or market trends you’re particularly optimistic about?
Irfan: SEBI’s new liquidity window facility is a significant step towards addressing the long-standing challenge of limited liquidity in India’s corporate bond market. Moves such as allowing investors, especially retail participants, to sell debt securities back to issuers on specific dates through a put option make bonds a more attractive and accessible investment avenue.
Beyond liquidity, India’s bond market is undergoing structural shifts. The inclusion of Indian government bonds in JPMorgan’s GBI-EM index has already attracted $15 billion in foreign inflows, with further evaluations by FTSE Russell and Bloomberg likely to deepen participation. Domestic demand remains strong, with pension funds, insurance companies, and mutual funds increasingly allocating to bonds.
The potential for rate cuts in 2025 could further boost bond prices, while regulatory reforms such as the removal of the HTM cap for banks are set to enhance market participation. Additionally, the rise of environmental, social, and governance (ESG) investments and green bonds, driven by India’s clean energy commitments, is shaping a more diversified fixed-income market.
